Making Profits from Peanuts

Reading time: 3 minutes

That was the question asked of the US Government – who determined the going price at an eye-raising $761.

If you’re thinking that these nuts are expensive (or somehow processed in the same way as the famed feces-coated Kopi luwak coffee beans), guess again.

This standard jar of peanut butter, known as Standard Reference Material No. 2387 – was priced at $761 because of exactly that – it was uniquely ‘standard’.

Standard Reference Material No. 2387 was curated by government scientists to determine the precise amounts of fibre, fatty acids, acrylamide and amino acids needed to create the perfect blend of peanut butter.

In the world of food testing, this kind of data was apparently essential to food industry and testing labs. But it was a lot of money spent to achieve what is something not unlike your local, store bought peanut butter.

A digital marketing campaign works much in the same way. You don’t need to spend big bucks to achieve a typical result – no matter how big or small your budget is.

SMEs often feel that they simply can’t compete for ad space and amplify their voice when your big competitors roll out ‘Standard Reference Material No. 2387’ digital marketing campaigns. But you can pay peanuts for a digital marketing campaign, and expect to see results – when you focus on the fundamentals.

Rule 1: Stick to a go-to market strategy

To see a tangible return on interest, it’s important SMEs preface any marketing dollars with a tangible marketing strategy. Doing so actually saves money in the long run, and avoids media wastage.

Big marketing departments often throw all sorts strategies on the wall to see what sticks, without any discernible goal to determine what a good ‘stick’ means to the business. SMEs can’t afford this luxury.

Think, for example, about where your customer is likely to find you. If you’re an emergency plumber, you probably can keep your advertising dollars away from appearing on someone’s late night binge of Survivor on 10Play. Most probably, your intended customer will need you when they Google search you with one hand, while the other is frantically trying to shut off the water supply.

Rule 2: Smooth or crunchy? You can’t please every intended audience.

SMEs can often have many audiences they wish to service. Focusing this targeting, and avoiding a scatter-gun approach, makes for a more tangible ROI where you can see an increase over one part of your business. A plumber can target, for example, ‘DIYs gone wrong’ – and might leave behind the market of high-end bathroom repairs.

That’s not to say your message, or goals, should be static. Focus on what you think is your most ideal market, taking into account seasonality, demand, your capacity and expected return on interest.

Rule 3: You have to grow nuts, to get a good nut

SMEs often get bogged down in the idea that they should see a ROI that directly correlates to a return in sales or leads. But a stronger understanding of the marketing funnel shows that it’s a process – much like simply crushing nuts does not give you peanut butter.

Developing a top-tier top of the funnel strategy can go a long ways in establishing your SME as a core business – you have to be on the scene, to be seen, after all.

Big players do it all the time. Think about every car ad you see on television. Your business needs to do the same thing, but target the right audiences at this time – all while getting your face out there and developing that brand recognition.

In short – leads are a long-term game – awareness is still good.

Taking into account these fundamental rules to SME marketing, Standard Reference Material No. 2387 doesn’t have to be the ‘standard’ when designing a marketing plan. The marketing landscape allows SMEs to compete against massive corporate advertising budgets with perfectly peanut-butter manufactured algorithms. You just need to think smart, and make sure you’re getting the most out of every dollar you invest.

subscribe now

Sign up to our newsletter for fortnightly tips and digital marketing advice, created for small business.

In reality, the mere thought of spending that much on a jar of blended nuts makes my skin crawl –not just because I’m allergic to nuts.